Invest In Zcash – How To Invest In Zcash For Beginners
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Launched in 2016, Zcash (ZEC) is a decentralized token with high regard for privacy. Unlike Bitcoin, which is pseudonymous, Zcash is completely anonymous and keeps sending and receiving addresses private during transactions.
This use case contributes toward the traction generated by the ZEC token in the cryptocurrency marketplace. In this guide, we explain how to invest in Zcash in a cost-effective manner and from the comfort of your home.
Table of Contents
#1 Broker to Invest in Zcash – eToro
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How to Invest in Zcash – Choose a Broker
Zcash has been in the cryptocurrency scene for almost five years. As such, it’s only right that you’ll find numerous platforms where you can invest in the ZEC token.
However, since not all of these platforms offer a great service, below we’ve highlighted the best brokers to invest in Zcash.
- eToro – Overall Best Broker to Invest in Zcash in the US
- Coinbase – Great Broker to Invest in Zcash for Beginners
- Binance – Largest Broker to Invest in Zcash for Easy Diversification
- Webull – Invest in Zcash From as Little as $1
- Kraken – Credible Exchange for Investing in Zcash
All the brokers above have been examined by our researchers to assess their credibility. Later in this How to Invest in Zcash Guide, we shall provide a detailed review of each provider.
How to Invest in Zcash – A Quick Guide For 2021
A quick walkthrough is all you need if you’re looking to get started with a Zcash investment immediately. In this section, we’ve explained how you can invest in Zcash in under five minutes.
Further down, you’ll find a more detailed walkthrough on how to invest in Zcash in the US, especially if you’re a beginner.
- Step 1: Create an Account with eToro – Among the numerous platforms available to invest in Zcash, this broker tops the list – not least because it’s regulated by leading financial bodies. You can open an account with the broker by visiting the website and signing up. You simply need to provide some personal details such as your full name and home address.
- Step 2: Verify Your Identity – For a broker like eToro that’s regulated by financial bodies including the SEC and FCA, a Know Your Customer (KYC) process is standard procedure. Therefore, to invest in Zcash, you’ll need to provide a government-issued ID alongside a document that verifies your home address – such as a bank statement.
- Step 3: Add Funds to Your Account – You’ll need to make a minimum deposit of $50 in your account and this can be done through any of the supported payment methods – such as a debit/credit card or bank wire. Once you make the deposit, you can invest in Zcash from as little as $25.
- Step 4: Invest in Zcash – After adding funds to your account, you can proceed to search for the token. Input ‘Zcash’ into the search box to locate the token, after which you click on the ‘Trade’ button. Then enter your investment stake and open the trade.
These four steps will help you invest in Zcash in a seamless manner. With a platform like eToro, once you purchase the tokens, you can store them in the in-built wallet provided by the broker.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Where to Buy Zcash – Full Broker Reviews
To determine the best brokers where you can invest in Zcash, we had to come up with strict metrics to assess the most notable platforms in the market. These metrics include regulation, cost-effectiveness, ease-of-use, supported coins, and more.
Therefore, in this section of our How to Invest in Zcash Guide, we bring you the best brokers to buy the token.
1. eToro – Overall Best Broker to Invest in Zcash in the US
With heavy regulation from top financial bodies such as the SEC, eToro tops the list of brokers that allow you to invest in Zcash. The broker is also registered with FINRA in the US, and in other jurisdictions, eToro is licensed by the FCA, CySEC, and ASIC. What this means is that you get to enjoy adequate protection when you invest in Zcash using eToro.
Once you sign up on this broker, you gain access to dozens of cryptocurrency markets – which are in addition to Zcash. This makes it convenient to diversify your investment without risking too much, as eToro will allow you to purchase the listed tokens from $25 upward. Supported markets include established tokens like Bitcoin, Ethereum, XRP, and EOS. You can also invest in numerous Defi tokens such as Aave and Yearn.Finance. The investment process on eToro is super easy, as there are various payment methods for you to use. This includes debit/credit cards and ACH.
With any of these options, you can make the minimum deposit of $50 that’s required to get started with a Zcash investment in the US. Interestingly, when you add funds to your account using the debit/credit card option, you incur no fee. This is a great perk that’s rare in the cryptocurrency industry. After all, most brokers in this space charge around 3-5% for debit/credit card purchases.
When you invest in Zcash using eToro, you’re doing so on a spread-only basis. This means that you only need to cover the difference between the ‘ask’ and ‘bid’ price. Therefore, you don’t have to contend with variable commissions as you may find on other popular brokers like Coinbase. In addition, eToro makes investing in Zcash super easy for beginners – as the broker has a simple user interface designed to provide prompts that guide you through the process.
We can’t conclude our review of this broker without discussing some of the platform’s tools that make investing in Zcash convenient for beginners. Precisely, you have the CryptoPortfolio and the copy trading tool. The CryptoPortfolio allows you to invest in a basket of cryptocurrencies through a single trade. The portfolio is managed by the eToro team, which means you can invest in crypto assets passively. The Copy Trading tool allows you to copy the positions of a successful eToro investor. As such, any trades they place will proportionately reflect in your portfolio.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Minimum investment per trade from just $25
- Supports debit/credit cards, online banking, and local bank transfers
- Regulated by the SEC, FCA, CySEC, and ASIC
- Minimum deposit of $50 and no transaction fees for US citizens
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
2. Coinbase – Great Broker to Invest in Zcash for Beginners
If you’re looking to invest in Zcash without prior experience, Coinbase is a great option for you. The broker has a user-friendly interface that makes it super convenient to navigate your way across the investment process. With dozens of tokens listed on the broker, you can diversify your Zcash investment in a seamless manner. Some of the listed markets include Bitcoin, Litecoin, Ethereum, XRP, and more.
Perhaps the reason why the broker has more than 68 million users is because of the security measures in place to protect tokens. On Coinbase, 98% of tokens are stored in cold storage, meaning they are offline. This ensures that hackers cannot access client funds. Additionally, users need to complete a two-factor authentication process to log into their accounts. Another perk is that the broker is home to high liquidity, making it super easy to sell your Zcash when the time’s right.
However, our researchers found that the broker has a high-fee structure, which might affect your Zcash investment – especially if you’re just getting started. For instance, when you make a deposit into your account using a debit/credit card, you’ll be charged 3.99% of the transaction amount. Although you can use a bank transfer as an alternative – which comes with no fees, this payment method is slow and can have you waiting for over 24 hours to receive your funds.
Pros
- One of the most popular cryptocurrency exchanges
- More than 68 million users
- Supports instant debit card purchases
- Dozens of digital currencies to choose from
- Institutional-grade security practices
Cons
- Debit card deposits are expensive at 3.99%
- You will pay a standard trading commission of 1.49%
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
3. Binance – Largest Broker to Invest in Zcash for Easy Diversification
In most cases, investors look towards purchasing other tokens alongside Zcash in a bid to hedge their risks in the cryptocurrency market. With over 50 supported markets, Binance is the largest cryptocurrency exchange and broker for you to do this. The platform has created Binance US, an exchange for Americans to invest in numerous tokens including Zcash. There are also different security measures in place to ensure the safety of tokens, such as device whitelisting, and storing most digital assets in cold wallets.
In addition to the numerous supported markets, Binance also provides you with comprehensive charting options. This makes it convenient to stay updated with the Zcash market and decide when to execute an investment decision. Another impressive perk of the Binance US website is that the platform has a simple buy/sell interface, which makes investing in Zcash a seamless process for beginners. You can easily get started by signing up, validating your identity, and then proceeding to invest in Zcash using a debit/credit payment option.
Notably, although you can invest in Zcash when using the Binance US platform, you don’t have access to as many markets as you do with the global version. However, the distinguishing factor for Binance US is that the platform has a low fee policy. For instance, debit/credit card purchases will cost you just 0.50%. Plus, only a commission of 0.10% is charged per slide, making the broker relatively cost-effective when you compare it against other platforms. Additionally, you can maximize your Zcash investment on Binance by staking the tokens to earn interest.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit card
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card
- No e-wallet deposits or withdrawals
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
4. Webull – Invest in Zcash From as Little as $1
One of the most impressive features of Webull is the platform’s significantly low minimum deposit requirement. To get started with investing in Zcash on Webull, all you need to meet is a $1 minimum. This is perhaps the reason why the broker is popular in the US. Additionally, worthy of note is the broker’s extremely easy-to-use interface. When you consider this feature alongside the minimum requirement, you’d realize the broker is a great option for beginners.
Furthermore, Webull has an impressive lineup of charting features. The platform provides you with varying types of timeframes and drawing tools, as well as more than 50 technical indicators that you can leverage to gain more insights into the Zcash markets. Although the broker is more known for stocks and ETFs, the platform also supports a host of cryptocurrencies that you can conveniently invest in.
You even get more features when you use the desktop version of the broker, as this provides you with relevant news headlines and top-notch analysis that you can read to make informed decisions. You can get started with the broker by visiting the website to sign up. However, do note that while Webull allows you to invest in Zcash without paying commissions, the broker’s spread starts at 1%.
Pros
- User-friendly trading app for both iOS and Android devices
- 0% commission policy across all assets
- No minimum deposit
- ACH deposits and withdrawals are fee-free
- Regulated in the US
- Invest from just $1
Cons
- Crypto spreads start at 1%
- Too basic for experienced traders
- No support for e-wallets or debit/credit cards
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
5. Kraken – Credible Exchange for Investing in Zcash
Kraken will allow you to invest in Zcash in under five minutes. You simply need to create an account, upload a valid ID, make a deposit, and invest in the token. After investing in Zcash, it will be smart to withdraw your tokens into a secure private wallet, as Kraken is an exchange that doesn’t offer you a storage option for your coins. There are many wallets in the market you can choose for this purpose, but ensure it’s a reliable one.
Furthermore, the broker supports over 50 cryptocurrency markets including Bitcoin, Ethereum, Ripple, Litecoin, Stellar, and of course Zcash. With as little as $10, you can start investing in any of these markets, which means the exchange allows you to take minimal risks in the cryptocurrency scene. Additionally, the exchange’s customer support team is available 24/7, meaning you can always reach out when you need help, and rest assured you’d get an answer.
However, when you consider the exchange’s fee structure, things can get a bit discouraging, especially for beginners. First, when you make deposits on Kraken, the exchange charges you 0.5%. Additionally, before you can access the exchange’s lowest available commission of 0.10%, you’re required to have a minimum 30-day trading volume of $10 million. Otherwise, you’ll be charged a commission of 0.26% per slide. All these can make the Zcash investment process a bit expenssive for beginners who are looking for cost-effective options.
Pros
- Popular cryptocurrency exchange and broker
- Great selection of cryptocurrencies
- Supports both crypto-cross and fiat-to-crypto pairs
- Accepts debit/credit cards and bank transfers
- Offers complex crypto instruments for experienced traders
Cons
- Not all US states are supported
- Fees are somewhat pricey
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
How to Invest in Zcash – Detailed & Explained in Full
Now that you’ve learned about the best platforms for you to invest in Zcash in the US, we will take you through the actual steps involved in getting started. This will be detailed, unlike the quick walkthrough earlier in this How to Invest in Zcash Guide.
Considering that eToro is the broker that passed our strict metrics including cost-effectiveness, regulation, and ease of use, we shall be discussing these steps using the platform.
Step1: Open an Account to Invest in Zcash
eToro allows you to open an investment account with ease. Simply visit the website and sign up by providing your email address and choosing a password. Following that, you’ll get prompts requesting you to fill in different personal details.
This includes your full name, home address, date of birth, social security number, and more. The broker will also ask you questions about your investment experience and your risk appetite. Lastly, you’ll provide your phone number, where a PIN will be sent. Enter the PIN into the required box on-screen.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Step 2: Verify Your Identity
You won’t get full access to all the features on the broker until you verify your identity. Here, you simply need to upload a government issued-ID and a bank statement/utility bill. Within two minutes, your account will be verified and you’ll be able to fully utilize the broker.
Step 3: Add Funds to Your Account
To invest in Zcash in the US, eToro requires you to make a minimum deposit of $50. You can do this within minutes by using the debit/credit card payment method, which is the fastest of the different options supported by eToro.
Since you’re paying from the US, you incur no deposit fees when you use any of the supported payment methods. This is another great perk that makes eToro a low-cost broker.
Step 4: Search for Zcash
With a funded account, you can proceed to search for Zcash on eToro. Simply enter the token’s name into the search box to find it. While you’ll see different options from the result displayed, choose the one at the top to directly invest in Zcash.
Then hit the ‘Trade’ button to proceed to the final step – which will require you to set up a buy order.
Step 5: Invest in Zcash
Selecting the ‘Trade’ button will take you to the order page, where you’ll enter your stake. Here, eToro has made the process a lot easier by requesting that you input how much you’re willing to invest in Zcash in USD – instead of the number of tokens you want to buy.
Therefore, suppose you simply want to invest the minimum possible stake in Zcash, you’d enter $25. However, if you’re willing to invest more, you can simply adjust the stake size using the plus (+) and minus (-) symbols beside the box. Once you’ve entered your stake, click on the Ópen Trade’ button to complete the Zcash investment process.
How to Sell Zcash
When you invest in Zcash, you’ll have to keep an eye on the market to know when the token’s price moves upward. This is because the only way to secure your gains from Zcash is by selling the token when the price increases. But you cannot do this if you don’t understand what the process entails.
Here, we discuss the procedure involved in selling your Zcash tokens.
- To sell your Zcash, you have to open your eToro account and go to your portfolio.
- Click on the ‘Sell’ button and use a market order.
- With a market order, the broker will sell your tokens at the next available price.
- Following that, you’ll get your funds through the original method by which you purchased your tokens.
As you can see from the above, when choosing to invest in Zcash with a broker like eToro – you can cash out your tokens with ease.
Ways to Invest in Zcash
In a market as large as that of cryptocurrency, you can expect that there are many ways to invest in Zcash. Some investors find the features of cryptocurrency exchanges satisfactory while others prefer to use brokers.
Ultimately, the platform you select will depend on how informed you are about its features. Therefore, in this section of our How to Invest in Zcash Guide, we’ll discuss the different ways to buy the token.
Invest in Zcash Using an Online Broker
Among the online brokers we reviewed, eToro stands out for its heavy regulation. The broker is licensed by the SEC in the US, which is a significant indication of the platform’s credibility.
- With a broker like eToro, you can rest assured that you’re in the regulator’s safety net.
- With licensed brokers in the US, you can invest in Zcash through USD. Meaning, debit/credit cards are part of the payment options you can use.
- Regulated brokers are also expected to operate with a fair system and complete transparency.
Essentially, with regulated brokers, you’d be investing in Zcash in a secure manner, which is an important feature in the cryptocurrency market. This is because you’ll have no need to constantly worry about the safety of your funds while you monitor price movements.
Invest in Zcash via Cryptocurrency Exchange
When you use a cryptocurrency exchange to invest in Zcash, you’d be buying the token from other traders. Some investors choose this option because certain cryptocurrency exchanges have a significantly low fee structure alongside high liquidity levels.
However, while this might appear impressive, you must consider that these exchanges, even some of the most established ones, are not regulated. This is a legitimate reason to be concerned about their credibility, especially when you’d be investing in Zcash with such a platform.
Additionally, since these exchanges are not licensed by relevant financial authorities in the US – such as the SEC, they would be unable to support debit/credit card payments. Using any other payment method might make things a bit strenuous for you as a beginner.
Should I Invest in Zcash
When investing in Zcash, it’s important to have a plan. Some investors rush into the cryptocurrency scene hoping to make a profit easily and risk-free. In reality, the cryptocurrency market works differently, as the industry is highly volatile.
Therefore, before investing in Zcash, you must do adequate research to ensure you understand the project. This will go a long way in informing your decision on whether to buy the project or otherwise. To help you gain more insights into the token, we have discussed some important features of Zcash in this section.
Operational Since 2016
When evaluating a project, one thing you want to consider is how long the token has been in the cryptocurrency scene. This is because, with established tokens, you have sufficient historical data to study before deciding on buying the token.
We researched CoinMarketCap and found that over 11,000 tokens are listed, most of which have only been in the cryptocurrency scene for about a year or two. This is unlike Zcash that was launched as far back as 2016.
Meaning, you can go all the way back to study how the token has performed in the market. You can consider the bearish moments the token has gone through to determine how it reacted. All these will inform your buying decision when contemplating an investment in Zcash.
Privacy
Zcash attempts to address the privacy issues in the cryptocurrency space. For a long time, many investors were of the notion that transactions were completely private in the digital asset industry. However, this has not always been the case, as most tokens are pseudonymous.
Leveraging zero-knowledge proofs, Zcash offers users the avenue to transact without losing their anonymity status. With this unique system, users can donate and invest with confidence knowing their track record is safely kept private. This is a significant use case that creates some traction around the token and might impact the coin’s value in the market.
Highly Scalable
Another perk of Zcash is the speed at which the protocol processes transactions. Often, much traffic on the Bitcoin network affects the execution speed, which leads to delays in transactions. However, Zcash takes a unique approach to address this traffic issue, thereby leveraging the flaws of Bitcoin to further establish its presence in the market.
Top Security
Investors are often attracted to tokens that are secure. In a volatile cryptocurrency market, no investor wants a token with security that’s below average. Zcash stands out in this regard, as the project was built based on a peer-reviewed scientific strategy to ensure the token is highly secure.
This has earned the coin a reputation as a secure privacy token in the market. Over time, this is a use case that will likely draw more attention to the token, which might cause a positive price movement.
What are the Risks of Investing in Zcash?
For every token in the cryptocurrency market, the risk is an important factor to consider. In the same manner, Zcash is not free from risks, meaning you must carefully evaluate different factors that might affect your investment in the token.
Moreover, since your goal is to make a profit, it’s only right to know more about anything that could possibly prevent you from achieving that objective.
- Suppose you decide to go with a cryptocurrency exchange. In doing so, you’d be leaving your tokens with an unregulated platform. A common problem here is that your tokens could get hacked, meaning you might lose your investment. Since the platform’s unregulated, you enjoy no protection in such instances.
- Even if you choose to transfer your tokens to a private wallet, your tokens are highly susceptible to remote attacks.
- Another risk to consider is the volatility of the market. When you invest in Zcash, you should expect that the market can move both positively and negatively.
- Additionally, the token faces stiff competition from other assets in the privacy coin scene – such as Dash and Monero. These two tokens are used for performing more daily transactions than Zcash, which might gradually affect the coin’s value in the market.
You can hedge some of these risks using some effective strategies. First, you can diversify your Zcash investment by purchasing some other tokens. Additionally, you can also leverage the dollar-cost averaging (DCA) strategy, meaning you’ll buy small amounts of the token on a regular basis.
Lastly, you might want to consider an all-in-one broker like eToro where you can store your Zcash tokens in the in-built wallet. This way, you don’t have to move your tokens across different platforms, limiting the possibility of remote attacks.
How Much Does it Cost to Invest in Zcash?
When you know the fees you might pay while investing in Zcash, you’re more informed on what to expect. However, the cost of investing in Zcash will ultimately depend on the broker you’re using.
- Many investors choose to use the debit/credit payment method to add funds to their account – since that’s the fastest option.
- However, you’ll likely incur a fee ranging between 3-5% when you use this method.
- But you can avoid such payments when you use eToro. The broker allows all US investors to add funds to their accounts without paying any fees. This policy applies to both debit/credit cards and the ACH option.
- On eToro, you only need to bother about the spread, which starts from 0.75%.
- However, with some other brokers like Coinbase, there’s a standard commission of 1.49% per slide. You also incur the spread – which can surpass over 2%.
From the above, your best bet is to always go for a cost-effective broker with a clear and concise fee policy.
How to Invest in Zcash – Conclusion
In this guide, we have explained all you need to know when you’re looking to invest in Zcash in the US. We reviewed the Zcash best brokers and provided you with an extensive explanation of the steps involved.
If you want to invest in ZEC tokens today – a heavily regulated broker like eToro is a great option here. Asides from allowing US users to make deposits for free, the broker also has a low trading fee structure that makes investing in Zcash cost-effective.
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